The IBD SmartSelect Composite Rating for Zscaler rose from 93 to 98 Wednesday. The EPS rating is 99. Of concern is the low Relative Strength rating of 56.
The new score tells you the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Zscaler is not currently near a proper buy zone, having just finally cleared the 200-day moving average. See if the stock goes on to form a new chart pattern offering a new buying opportunity.
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The stock has a 99 EPS Rating, meaning its recent quarterly and annual earnings growth tops 99% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
ZS Earnings Preview
The company reported a 185% rise in earnings for Q2. That marks three straight quarters of rising EPS performance. Sales growth fell to 52%, down from 54% in the previous quarter. The company's next quarterly report is expected on or around Jun. 1.
Zscaler holds the No. 5 rank among its peers in the Computer Software-Security industry group. CrowdStrike Holdings is the No. 1-ranked stock within the group.
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